ALLEGIANT TRAVEL COMPANY COMPLETES SENIOR SECURED DEBT REFINANCING
LA VEGAS, August 18, 2022 /PRNewswire/ — Allegiant Travel Company (NASDAQ:ALGT) today closed its private offering and issued $550.0 million in aggregate principal amount of its 7.250% Senior Secured Notes due 2027 (the “Notes”).
Each of the Company’s subsidiaries has guaranteed the Notes except for Dustland, LLC, Sunseeker Resorts, Inc. and its subsidiaries, and certain other non-significant subsidiaries. The Notes and related security are secured by security interests in substantially all of the property and assets of the Company and the Note Guarantors, except for aircraft, aircraft engines, real estate and certain other assets. . The security that secures the Notes also secures the existing assets of the company $150.0 million 8.500% Senior Secured Bonds Due 2024 (the “Existing Bonds”) and the Company’s New Revolving Credit Facility (as defined below) on a past bet base. By combining the aggregate principal amount of the Notes with the aggregate principal amount of the Existing Notes, the Company has approximately $700 million of debts guaranteed by these sureties.
The Company used the net proceeds from the sale of the Notes to repay the Company’s Term Loan B, the principal amount of which was $533 millionand to pay the fees and expenses of the transaction and will use the balance for general corporate purposes.
“This debt refinancing puts Allegiant in a strong position going forward, as it gives us the liquidity profile to execute our growth strategy,” said the company’s president and chief financial officer. Gregory C. Anderson. “The call function in this transaction provides valuable flexibility as we navigate the current interest rate environment while ensuring a strong capital structure to support our business initiatives.”
The Company has also entered into a credit agreement which provides for a senior secured revolving loan facility of up to $75.0 million (the “Revolving Credit Facility”). The Company’s obligations under the Revolving Credit Facility will be guaranteed by the same guarantors that guarantee the Notes and will be guaranteed by the same guarantee that guarantees the Notes. The Notes and the Revolving Credit Facility together provide $625 million in cash secured by these sureties at a current mixed rate of 6.4% as long as they are not drawn down.
The new revolving credit facility from Barclays, together with the existing revolving credit facilities from MUFG Bank and Crédit Agricole, will give Allegiant more $1.4 billion in available cash.
The Notes and related collateral have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any other jurisdiction. The Notes and related collateral have been offered and sold only to persons reasonably considered to be qualified institutional purchasers on the basis of Rule 144A under securities law (“Rule 144A”) and certain non-U.S. persons in transactions outside of United States based on Regulation S under the Securities Act.
alleviating – Together we fly™
VegasAllegiant (NASDAQ:ALGT) is an integrated travel agency with an airline at its heart, focused on connecting customers with the people, places and experiences that matter most. Since 1999, Allegiant Air has connected travelers from small and mid-sized cities to world-class vacation destinations with nonstop flights and some of the lowest average fares in the industry. Today, Allegiant’s fleet serves communities across the country, with base airfares less than half the cost of an average domestic round-trip ticket. For more information, visit us at Allegiant.com. Media information, including photos, is available at http://gofly.us/iiFa303wrtF.
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This press release is provided for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities and does not constitute an offer to sell or the solicitation of an offer to buy or a sale securities of any jurisdiction in violation of applicable law.
SOURCEAllegiant Travel Company